Zakat is the most efficient way to help the poor and needy improve their living standards or achieve their 'dharuriyyat’ and ‘hajiyyat’ needs. Furthermore, zakat institutions have been exposed to many challenges that hinder the efficiency of the institutions in administering the zakat distribution including inadequate data records, the shortage of staffing, and geographical factors. Thus, zakat authority introduces a zakat refund known as wakalah that would allow zakat payers to distribute zakat refunds to the asnaf group who are eligible through the return of a certain amount of zakat money paid. Zakat institutions take the initiative to collaborate with financial institutions focused on this study Bank Muamalat Malaysia Berhad (BMMB) as wakil on zakat refund distribution. Therefore, this study aims to explain the issues and challenges in managing zakat refund distribution, especially BMMB, and identify the solutions that the BMMB has implemented in dealing with the issues. Two research methods were used in completing this study; firstly, interviews were conducted with three experts in the field of zakat refund at BMMB. The second method involves a literature review to help explain more precisely. The finding shows issues regarding the account, haul, and rightful beneficiaries in managing zakat refund distribution in BMMB. However, the BMMB managed to overcome the issues with appropriate methods and solutions to perform its duties as a representative on behalf of the zakat institution.
Ab Rahman, A., Alias, H. M., & Omar, S. S. (2012). Zakat institution in Malaysia: Problems and Issues. Global Journal Al-Thaqafah, 35-41.
Ab Shatar, W. (2022). The Role of Islamic Financial Institution in Distributing Zakat Refund: A Study of Bank Muamalat Malaysia Berhad as Wakil. (N. Ishak, Interviewer)
Abd. Wahab, N., & Abdul Rahman, A. (2013). Determinants of Efficiency of Zakat Institutions in Malaysia: A Non-parametric Approach. Asian Journal of Business and Accounting, 33-64.
Abdul Wahab, A., & Borhan, J. (2014). Faktor Penentu Pembayaran Zakat oleh Entiti Perniagaan di Malaysia: Satu Tinjauan Teori. Shariah Journal, 295-322.
Abu Bakar, A., Ibrahim, M., & Noh, M. S. (2014). Zakat Management and Taxation. Kuala Lumpur: IBFIM.
Ag Omar, P. (2019). Analisis Prestasi Kecekapan Agihan Zakat: Kajian di Tabung Baitulmal Sarawak. Labuan e-Journal of Muamalat and Society, 60-78.
Sawmar, A., & Mohammed, M. (2021). Enhancing Zakat Compliance Through Good Governance: A Conceptual Framework. ISRA International Journal of Islamic Finance, 136-154.
Cropley, A. (2019). Qualitative Research Methods: A Practice-Oriented Introduction for Students of Psychology and Education. Zin?tne, 0–188.
https://doi.org/10.13140/RG.2.1.3095.6888/1
Embong, M., Taha, R., & Nor, M. (2013). Role of Zakat to Eradicate Poverty in Malaysia. Jurnal Pengurusan, 141-150.
Shaiffe, F. S. A. (2021). Aplikasi MyWakalah: Pengurusan Zakat Melalui Konsep Wakalah Zakat Oleh Institusi Zakat Di Wilayah Persekutuan. Journal of Islamic, Social, Economics and Development (JISED), 95-102.
Harahap, L. (2018). Zakat Fund As The Starting Point of Entrepreneurship in Order to Alleviate Poverty (SDGs Issue). Global Review of Islamic Economics and Business, 1-15.
MAIWP. (2015). Laporan tahunan Majlis Agama Islam Wilayah Persekutuan tahun 2014.
MAIWP. (2019). Laporan tahunan Majlis Agama Islam Wilayah Persekutuan tahun 2018.
MAIWP. (2020). Laporan tahunan Majlis Agama Islam Wilayah Persekutuan tahun 2020.
Ariff, M. (2021). Konsep Wakalah: Pengalaman Pusat Pungutan Zakat - Majlis Agama Islam Wilayah Persekutuan. In M. Rosele, M. Johari, & M. Nor Paizin, Dimensi Baharu Zakat di Malaysia (pp. 363-371). Kuala Lumpur: Pusat Pungutan Zakat (PPZ-MAIWP) & Akademi Pengajian.
Esa, M. M., Noor, M. M., & Wahid, H. (2018). Cadangan Kodifikasi Akta Zakat Nasional dan Penubuhan Majlis Zakat Negara. Jurnal Ekonomi Malaysia, 153-165.
Paizin, M. N. S. S. (2021). Limitasi Penggunaan Konsep Wakalah Dalam Sistem Pengurusan Zakat Di Malaysia. e-JURNAL PENYELIDIKAN DAN INOVASI, 198-220.
Noor, Z., & Pickup, F. (2017). The role of zakat in supporting the Sustainable Development Goals. Indonesia: United Nations Development Programme (UNDP) Brief Series.
Paizin, N. M., & Abd Aziz, A. (2021). The Concepts and Views of Individuals on Wakalah Zakat Implementation. International Journal of Islamic Economics and Finance Research, 25-38.
Osmera, S., Wahid, H., & Noor, M. (2021). Sustainable Zakat Distribution through Wakalah Contract. International Journal of Zakat, 49-70.
Owoyemi, M. (2020). Zakat Management: The Crisis of Confidence In Zakat Agencies and The Legality of Giving Zakat Directly to The Poor. Journal of Islamic Accounting and Business Research, 498-510.
Saad, Q. A., & Al Foori, A. (2020). Zakat and Tax: A Comparative Study in Malaysia. International Journal of Innovation, Creativity and Change, 140-151.
Azam, R. M., & Long, M. N. (2020). Kutipan Zakat Menerusi Konsep Wakalah: Satu Sorotan Awal. International Journal of Zakat and Islamic Philanthropy, 143-151.
Shaiffe, F., & Hassan, S. (2019). Hisbah Dalam Agihan Zakat Melalui Konsep Wakalah Oleh Institusi Zakat: Kajian Di Wilayah Persekutuan . Journal of Islamic, Social, Economics and Development, 59-71.
Osmera, S. H. H. W. (2020). Elemen Kemahiran Dalam Wakalah Agihan Zakat: Kajian Kes di Pelaburan Hartanah Berhad. e-Prosiding Seminar Kewangan Islam Kebangsaan (e-SKIK 2020) (pp. 92-100). Kedah: Lembaga Zakat Negeri Kedah.
Taha, R., Zulkifli, M., Embong, M., & Nor, M. (2017). Zakat Distribution In The East Coast: Recipients’ View. Pertanika Journals Social Sciences & Humanities, 255-266.
In-Text Citation: (Razali et al., 2022)
To Cite this Article: Razali, M., Mohd, N., Ahmad, N. A. B., Zahid, E. S. B. M., & Ishak, N. N. (2022). Issue and Challenges on Zakat Refund Distribution. International Journal of Academic Research in Business and Social Sciences, 12(9), 1777– 1789.
Copyright: © 2022 The Author(s)
Published by Knowledge Words Publications (www.kwpublications.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode
